Top Ten Legal Tips for Homeowners
Elizabeth Shay, Esquire
Homeowners Assistance Program Coordinator
SeniorLAW Center
Joanna Jarzebowska, Esquire
Conwell Community Corp Fellow
Top Ten Tips
Legal help for housing issues: SeniorLAW Center and
SeniorLAW Helpline.
2. If your name isn’t on the DEED, take action!
3. If you own a house, make a Will.
4. Beware of Liens!
5. Protect yourself from theft of your home.
6. Don’t be swindled when you buy a house.
7. Prevent home repair fraud!
8. Having trouble paying your mortgage? Act immediately!
9. Alert! Beware of Mortgage Modification Scams.
10. When might a reverse mortgages be a good idea?
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Tip 1: Legal help for housing issues: SLC and
SeniorLAW Helpline.
• Largest provider of legal services to seniors in Pennsylvania
• Independent non-profit organization
• Serving over 10,000 seniors each year with:
• direct individual representation
• legal advice, information & referral services
• community legal education
• professional training
• systemic reform
• Legal staff and pro bono panel
• Celebrating over 30 Years of Service
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Over 10 Special Projects:
 Homeowners Assistance Program
 Project S.A.F.E.
 (Stop Abuse & Financial Exploitation)
 Serving Older Women Victims Of Violence & Sexual Assault
 Kinship Caregiver Network (Grandparents/ elders raising children)
 Fostering Connections to Kinship Care (DHS, abuse and neglect)
 Community-Based Legal Services, including home and hospital
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visits and neighborhood legal clinics throughout Philadelphia
Protection For Older Consumers
The Hospice and Home Care Legal Project
Planning To Age With Dignity & Independence
Asian Elderly Legal Project
Legal Services For Hispanic Elders
Pennsylvania SeniorLAW HelpLine
 1 877 PA SR LAW (1-877-727-7529)
 Statewide SeniorLAW HelpLine provides free legal advice,
counseling and information on any civil legal matter.
Home Assistance Program
 Free legal advice, information, referrals, representation
and education to Philadelphia homeowners 60 and older
 Estate Administration and Wills
 Home Repair Contractor Fraud
 Property Damage
 Mortgage Foreclosure
 Deed Transfers and Tangled Titles
 Code Enforcement, Utilities, Real Estate Tax Liens
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Tip 2: If your name isn’t on the DEED, take
action!
 Title is the legal concept of property ownership.
 A deed is a legal document that confirms a person’s
ownership of property, or that the person has title to the
property.
 Possession and payment of real estate taxes and
mortgage is not enough
 Property may be owned by a single person, or by
multiple persons
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Where to get a copy of a Deed:
 Department of Records in City Hall, Room 154.
 The copies cost $2 per page. Most deeds are four pages
or less.
 You can call 215-686-2296 to find out when the office is
open.
A Deed
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Why is it important to have title?
 Ability to enter payment plans for back real estate taxes
and water bills
 Access to home repair programs for low-income
homeowners
 Ability to take out a mortgage or negotiate modifications of
existing mortgages
 Ability to sell the property
 Ability to leave the property to someone in your Will
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What is a “tangled title” and why is
probate important
 Tangled Title is a phrase used to describe problems related
to legal ownership of real estate.
 If you live in a home and consider yourself the
homeowner, but your name is not on the deed, you may
have a tangled title.
• Family Owned Properties: Problems occur when the
homeowner passes away and family members continue
to live in the home without transferring title.
• Lease/Purchase or Rent-to-Own Agreements: Buyer
and seller agree that buyer will pay for the house in
installments while living in the property. When all
payments are made, seller will transfer title to the buyer.
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Example 1: Family Owned Property: There
was a Knock on the Door
 Harvey owned a house and lived in it with his wife, Wilma. (Wilma
was not named on the deed.) Harvey died unexpectedly and did not
leave a Will. Wilma continued to live in the house.
 10 years after Harvey died, Wilma received court papers. The city
was foreclosing on the house because of unpaid real estate taxes.
Wilma called the city and was told that only the owner can prevent
the sale by entering into a payment plan for the back taxes.
 Wilma went to an attorney to have her name put on the deed to the
house. The attorney explained that because Harvey did not have a
Will, the state law controls how Harvey’s property passes after
death. Harvey’s two children with Wilma and his five children from
a prior marriage all have ownership interests in the property.
 The only way for Wilma to be the sole owner is to have all of the
heirs transfer their interests in the property to her. Wilma has
never met some of her stepchildren and has no way to locate them.
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Prevention and Solution:
 Homeowners should:
 Write a Will to decide in advance who gets the
house
 Probate estate of record owner as soon as they die
 If some heirs of the record owner do not want to
keep their interests in the property, they should sign
a deed giving away their interests as soon as the
record owner dies
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Example 2: Lease Purchase: Renee
and Olivia
 Renee is renting Olivia’s property. Olivia offers to
sell the property to Renee and will accept
installment payments of the purchase price.
Renee agrees and signs the installment sales
agreement.
 Renee makes payments for 15 years and
continues living in the property. Renee makes
repairs and improvements to the property. After
the final installment payment, Renee calls Olivia
and asks when she will transfer the deed to her.
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Example 2: Renee and Olivia (cont.)
 Scenario 1
 Olivia tells Renee that she is willing to transfer the
deed, but there is a mortgage on the property which
Olivia took out after Renee started making her
installment payments. Olivia has been paying the
mortgage but can no longer afford to do so once Renee
stops paying her installments.
 Scenario 2
 After Renee makes her last payment, Olivia tells her the
property taxes have not been paid and the city wants to
sell the property.
 Scenario 3
 Renee has been making payments, but after nine years
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the payments start coming back in the mail. Renee
drives out to Olivia’s house and discovers she has
moved and Renee has no information where Olivia is
now living.
Prevention/Solutions: Lease-purchase
or rent-to-own agreement
 Make every effort NOT to enter into these agreements
 Make sure agreement is with the real owner of the property
 The agreement should be in writing
 include the property address, signed by the parties,
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especially the seller, and state how much is to be paid
and for how long
Notarize and record original agreement with the
Department of Records
Keep ALL receipts, such as payments, repairs,
improvements
Quiet Title Action in Common Pleas Court
 Settlement or Judicial Order
Negotiate with the record owner to get title signed over
Tip 3: If you own a house, make a Will.
 The Will designates who gets the house and other property when
the owner dies.
 A Will is valid if the person writing it is:
• At least 18 years old
• Mentally competent and
• Acting voluntarily
• Person must understand what property they own and must identify
who will receive the property when they die.
•
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The Will must be signed by the Testator and by 2 witnesses.
BEWARE: Do not add relative’s name to the deed instead of writing a
Will!
Example:
Mary owned her house and lived in it with her son, James. Mary went
to a lawyer and had James added to the deed. Two years later
James ran up gambling debts and his creditors petition the court
to have the house sold and the debts paid. Mary could become
homeless as a result of adding her son to the deed.
What happens if homeowner does not
have a will?
 Pennsylvania intestacy law determines who “inherits” their
property
EXAMPLE
 The grantee on the last recorded deed is John Owens. This makes
John the sole owner of the property. John dies survived by his
wife, Mary, and their three children, as well as two children from an
earlier relationship. When John dies, Mary inherits a 50% interest
in the property, and each of John’s five children inherits a 10%
ownership interest. The title to the house is now tangled.
 The intestacy laws do no apply if a deed includes “survivorship”
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rights.
 Ownership passes to the remaining owners who are still alive
 The last owner to die becomes the owner of the property
EXAMPLE
 The grantees on the last recorded deed are brothers, John, Paul
and Tim, with right of survivorship. When John dies, he is
survived by his wife and children. Paul and Tim are also alive when
John dies. Paul and Tim become owners of the property. John’s
wife and children have no legal right to the property. John’s Will
cannot change the ownership rights stated in the deed.
Tip 4: Beware of Liens!
 A lien is a debt on your home. It can result from:
• A delinquent mortgage
• Unpaid water and sewer bills
• Unpaid property taxes
• Unpaid construction costs that improved your property
 If lien is not paid, the creditor can go to court to foreclose and sell
your home
 The homeowner whose mortgage, water bills or taxes have
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become delinquent must take immediate action to prevent
foreclosure.
 OPEN YOUR MAIL!
 Seek help immediately! Philadelphia has a network of housing
counselors paid by the city to offer you budgeting advice.
 Contact your creditors and apply for hardship payment plans
 Contact an attorney or a legal services provider, such as
SeniorLAW Center
 If you are not the legal owner of the property, find out what
options you have.
MORTGAGE DELINQUENCIES
 If you have fallen behind on your mortgage or you foresee a
financial crisis call the Save Your Home Philly hotline at 215334-HOME (4663). You will be assigned to a housing
counselor who can help you negotiate with your mortgage
company.
WATER/ SEWER LIENS
 For unpaid water/sewer bills: contact the Water Revenue
Bureau at 215-686-6880 and ask to apply for the Water
Revenue Assistance Program (WRAP). You must live in the
property and be within the income guidelines.
REAL ESTATE TAXES
 For unpaid property taxes: contact the Philadelphia
Revenue Department at 215-686-6442. They can help with
property tax and rent rebate applications, low income
payment agreements and hardship agreements.
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Past Due Property Taxes
Collection of past due Philadelphia property tax bills is handled
by the Philadelphia revenue department and by two collection
firms:
 Linebarger, Goggan, Blair, & Sampson, LLP call 215-790-1117
 Goehring, Rutter & Boehm Law call 215-735-1910
To find out who is collecting your delinquent taxes, call the
Philadelphia Property Tax Agreements office at 215-683-5279 or
anthony.barreca@phila.gov
 Philadelphia has stepped up efforts to collect past due tax bills.
 If you are receiving collection notices, contact the collection
agency immediately.
 If Taxpayer defaults on two repayment agreements, the City
may proceed with foreclosure and sheriff sale of property.
 BEWARE: DO NOT AGREE TO PAY AN AMOUNT YOU CAN’T
AFFORD!! Ask for a hardship plan!
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Financial Hardship Agreements for
Past Due Taxes
 Allow low income taxpayers to pay off past due balances in
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installments
 Monthly payment determined on a case by case basis.
 Standard offer: 24 months.
 Low income plans: Household income is
 < 30% AMI (one person, $1363 per mo), pay 5% of income
 >30% but < 50% AMI (one person, up to $2271 per mo), pay 8%
 >50% but <60% AMI (one person, up to $2725 per mo), pay 10%
 Individual Financial Assessment
 Minimum payment: $25. In addition, taxpayers must pay current
real estate taxes.
Example:
 Sally owes $6131 for property taxes from 2005 to 2011. She
received a letter and called the collection firm. Sally was told over
the phone that she was eligible for a monthly repayment amount
of $287.21. Sally receives $718 Social Security and knew that she
could not pay but she said nothing. A few days later an agreement
came in the mail. Sally then called us and we contacted collection
agency and gave them her income and expense information and
she received an agreement to pay $25 per month.
Where to apply for a payment plan in
person!
Past Due Property Taxes:
If you have received a collection notice from the City:

Municipal Services Building
1401 John F. Kennedy Boulevard - Concourse Level
Monday - Friday 8:30am - 5:00pm
If you have not received any collection notice:
 Municipal Services Building
1401 John F. Kennedy Boulevard - Concourse Level
Monday - Friday 8:30am - 5:00pm
North Philadelphia Municipal Services Center (no cash accepted)
Hope Plaza
2761 N. 22nd Street
 Northeast Municipal Services Center (no cash accepted)
9239 (rear) Roosevelt Boulevard
Philadelphia, PA 19114
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Payment Plans for Current Year Taxes: All three sites will help
with payment plans.
Tip 5: Protect yourself from theft of
your home
 How does a house get stolen?
 Owner is absent from the property
 hospitalization, incarceration, military deployment,
or death of owner
 Owner’s name is forged on a deed transferring
ownership to another person
 Ownership is “tangled.” Beware of installment sale
agreement!
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Example 3: That’s MY House!
 Sam lived in the same house for 30 years. At 78, he was
living alone and doing well until he had a bad fall and
broke his hip. Sam had to spend 2 weeks in a hospital and
1 month in a rehab facility.
 When Sam finally returned to his house, he found a family
he didn’t know living there -- the Kirbys. Mr. Kirby told
Sam they bought the house from Jack for $200,000 three
weeks ago.
 Sam contacted a lawyer and found out that Jack
transferred the property to himself by forging Sam’s name
on the deed. Then Jack sold the property to the Kirbys.
 The Kirbys do not want to leave the house and Sam has
nowhere to go.
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Prevention & Solution: Fraudulent
Deeds
 READ ALL MAIL!.
 If city sends a notice that a deed has been recorded for your
property or if you stop receiving the tax bill: Investigate!
 SOMEONE MAY HAVE STOLEN THE HOUSE!
 NEVER LET YOUR HOME APPEAR ABANDONED!
 Ask a neighbor to collect mail, mow grass, and shovel snow
 AVOID INSTALLMENT SALES AGREEMENTS!
 Read carefully and record!
IF HOUSE IS STOLEN:
 Seek legal advice immediately!
 Create “clouds” on title
 Big problem for owner if mortgage is taken out by thief
 Lawsuit – expensive
 Quiet Title Action in Common Pleas Court
 Settlement or Judicial Order
 Check with District Attorney if they are investigating the theft
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Example 4: Forged Deed
 Jane bought the fixer upper next to Albert’s house intending to rehab
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it. The repairs were too extensive and Jane offered to sell the house to
Albert. They signed an installment sales agreement.
Albert made the monthly payments while he renovated the house.
Albert’s last installment payment was returned because Jane had
moved and left no forwarding address. Albert could not find Jane to
get the deed.
Albert rented the property to Susan. Susan paid rent for a few months
and then stopped. She refused to move out. Albert was unable to evict
her because he was not the record owner.
Susan discovered that Jane was the owner of the house and Albert did
not have a deed. Susan recorded a new deed indicating that Jane died
and identified herself as Jane’s daughter and heir. Susan became the
record owner!
Susan fraudulently transferred the property to herself. Using the
fraudulent deed, Susan obtained four mortgage loans on the property.
With the help of the police Albert was able to find Jane. Albert filed a
quiet title action against Susan and Jane appeared as his witness. The
court gave Albert title to the house and voided the deed to Susan. The
mortgage liens were also voided by the court.
Albert won his case but it was an expensive and long process.
Tip 6: Don’t be swindled when you buy
a house.
Buyers Beware
 Do Your Homework –
 Find out who is living in the house
 Are they tenants or do they claim to own the property?
 Make sure seller is listed as the grantee on the last deed
recorded for the property. Dep. of Records, City Hall, Room
154
 Title Report: informs you of any liens on the property
 Title Insurance: protects the buyer from undiscovered liens.
 If it seems too good to be true, it
probably is.
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Tip 7: Don’t be a victim of home repair
fraud!
When hiring a contractor: Investigate
• Hire a contractor you trust. If something makes you uneasy,
keep looking!
 Get written estimates from at least three licensed
contractors and compare.
 Check that the contractor has all required licenses before
hiring. Call Department of Licenses and InspectionsLicenses Issuance Unit at 686-2490.
 Verify that the contractor is registered with the Pennsylvania
Attorney General’s Office. Call 888-520-6680 or visit the
website at www.attorneygeneral.gov
 Confirm that contractor is insured and that he will obtain all
required construction permits.
 Read the entire contract before signing.
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Home Improvement Consumer
Protection Act (HIPCA)
If price is $500 or more:
 Contract must be in writing AND have contractor registration
number. It must be signed by homeowner and the contractor
 Approximate starting and ending dates
 Description of work and materials to be used – changes MUST
be in writing and signed by both parties
 Total price
 Names, Addresses and Telephone Numbers for all Subcontractors
 Contact information for the Contractor
 The Toll Free number for the PA AG Bureau of Consumer
Protection
 The amount of any down payment
 Notice of right to rescind within 3 business days
 Customer must be given COPY at time contract signed
If price is $1000 or more:
 Contractor cannot require a deposit in excess of 1/3 of the
contract price
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Home Improvement Act
Prohibited Acts
 Failure to make refund within 10 days after receiving
certified written request if:
 No substantial work performed, and
 45 days have passed since start date
 Contractor materially deviates from plans or
specifications without a written change order that
contains the price change for the deviation
 No verbal changes, even on small projects
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Example 5: Out of Court
Settlement
 Senior responded to ad for “government insured loans” for
home improvements
 New Jersey construction company called her back and told her
they would provide contractors to do the work and provide
financing for job, possibly with a reverse mortgage on her
home.
 Contractor inspected Senior’s home. Price to remodel her
kitchen and bathroom: $30,000. Senior told the contractor she
could not afford the repairs
 The contractor arranged for the house to be appraised and the
appraisal submitted to a reverse mortgage broker. The senior
never agreed to apply for a reverse mortgage and never
authorized an appraisal
 Senior told the contractor she did not want to make the
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renovations
Out of Court Settlement (Cont.)
 The contractor responded that she was in breach of their
contract – and demanded $1500 from the senior as payment for
the appraisal and remodeling plans
 Senior contacted a private attorney who offered the contractor
$50 per month – rejected by contractor
 SeniorLAW Center interviewed the client, reviewed the work
 We sent a letter to the contractor reciting the provisions of the
Home Improvement Consumer Protection Act that he had
violated:
 No starting or completion dates
 No specifications of work to be performed or materials to be
used
 No toll free number for AG
Contract was rescinded Client paid nothing to the contractor.
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Tip 8: Having trouble paying your
mortgage? Act Immediately!
 A mortgage is a contract between a borrower and a lender
that guarantees repayment of a loan. We call this a
“secured debt” because if the loan is not repaid, the house,
which is the “security,” can be sold.
 A borrower whose mortgage becomes delinquent must act
immediately to save his house from being foreclosed!
 A typical timeline for a foreclosure in Pennsylvania:
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Mortgage foreclosure timeline
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1/2/2012 January payment becomes past due.
2/2/2012 February payment becomes past due. Account is now due for 2
payments.
3/2/2012 March payment becomes past due. Account is now due for 3
payments.
3/5/2012 Lender sends the Notice of Intent to Foreclose (Act 6 Notice) to
mortgagor. If applicable the lender will also send Act 91 Notice to
mortgagor
4/8/2012 Act 6 and Act 91 Notices have expired - Lender refers account to
Foreclosure attorney.
5/8/2012 Foreclosure attorney begins the legal process by filing a
"Complaint" at the county courthouse.
6/23/2012 Mortgagor does not respond to the complaint. A" Default
Judgment" is entered.
6/25/2012 Sheriff’s office schedules a "Sheriff Sale" date.
7/25/2012 Notice of "Sheriff Sale" is sent to each mortgagor on the loan.
8/25/2012 "Sheriff Sale" is held.
8/27/2012 Sheriff prepares and records a deed conveying title to the
purchaser. If a third party does not purchase the property, the deed will
convey title back to the lender.
8/27/2012 Eviction process begins if mortgagor still resides in the property.
Mortgage Modification
 Don’t wait to hear from your mortgage company!
 Philadelphia borrowers who fall behind on their mortgage
payments: Call Save Your Home Philly hotline immediately!
 215-334-HOME (215-334-4663)
 Borrowers will be assigned to a housing counselor paid
for by the city to advise them on modification options.
 Borrowers sued for foreclosure are given an
opportunity to meet with their lender in court to attempt
a modification of their mortgage.
 Home Affordable Modification Program:
 The goal for most mortgage modifications is to reduce the
borrower’s housing expense to no more than 31% of the
household income.
 The “housing expense” includes the mortgage principal and
interest, plus the property taxes and homeowners insurance.
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Tenants Rights in Foreclosed
Properties
If the tenant is not related to the homeowner and pays
rent under a lease for a residential dwelling, then
 There is a 90 day pre-eviction notice requirement
 Tenants may continue to occupy the property until
their lease ends but the lease may be terminated with
a 90 day notice if the new purchaser plans to reside in
the property.
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Tip 9: Alert! Beware of Mortgage
Modification Scams
Loan modification scammers can trick a homeowner out of their
money and even their home.
BE SUSPICIOUS IF SOMEONE PROMISES TO :
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Save home from foreclosure
Obtain a loan modification
Get extension on time to cure a default, or
Arrange a short sale or deed in lieu of foreclosure
Avoid any organization or person who:
• Asks for a fee in advance
• Guarantees they will stop a foreclosure on a home or that they
will modify a loan
• Tells you to stop paying your payments to your mortgage
company and to pay them instead.
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Call 215-334-HOME (4663) for loan modification guidance or to
report a scam.
Example: 6 modification scam
 Beth received an unsolicited telephone call from a company
representing itself as Mortgage Solutions. The representative
told Beth that if she mailed them $800, the company would
contact her mortgage company and obtain a modification of
her mortgage. Mortgage Solutions guaranteed that her
monthly payment would be reduced from $650 to $350.
 The agreements Mortgage Solutions sent to Beth told a very
different story. One agreement states that it is only providing a
“products package” for homeowners to pursue a modification
on their own; the other agreement says that it will contact the
lender but there is no guarantee of a modification.
 Beth waited three weeks and then contacted her mortgage
company. The company had no record of being contacted by
Mortgage Solutions and had not received any payment. The
senior paid $800 or 90% of her monthly income to Mortgage
Solutions and received NO benefit AND she lost valuable time
in applying to legitimate modification programs.
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Tip 10: When might a reverse
mortgage be a good idea?
What is a Reverse Mortgage?
 A financial product available to homeowners age 62 or older
whose house is worth more than the liens against it.
 It converts the homeowner’s equity into cash which is then
“loaned” back to the homeowner.
 The loaned funds do not get repaid until the homeowner dies,
or stops living in the home for 12 months or sells the house.
 The amount the homeowner receives depends on value of
house, the age of homeowner (the older you are the more you
receive), and interest rate on reverse mortgage.
The Benefits:
 The amount received can be paid out in a single payment,
regular monthly payments or as a line of credit.
 There are no monthly repayments.
 The amount owed can never be more then the home’s worth at
the time of repayment.
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Reverse Mortgages: disadvantages
 Because you make no repayments, interest is added to the loan
balance and your debt gets larger and your home equity
decreases.
 The homeowner must keep the house in good repair and must
continue to pay real estate taxes and insurance. If not, lender
may foreclose.
 The fees to obtain a reverse mortgage average about $8000.
 If the homeowner receives SSI or Medicaid, the cash received
may make the homeowner ineligible for public aid.
 When time comes for repayment, the homeowner or his heirs
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must repay the loan if they want to keep the house. There is
some protection for widows who may have the right to repay
the loan by tendering 95% of the home’s fair market value.
Home Equity Conversion Mortgage
(HECM)
 HECM Standard: is a reverse mortgage that is insured by
the federal government. It usually provides the largest
amount of cash and can cost less then other reverse
mortgages.
 HECM Saver: an option for homeowners who wish to
borrow a lower amount for a shorter period. Lower upfront
fees and interest is charged.
 Example: when a home owner needs a small loan to
renovate the house and plans to move out within a few
years.
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For information on reverse mortgages, call AARP/Reverse
Mortgage Counseling Services at 1-800-209-8085.
Resources
To find an Attorney or Obtain Legal Advice:
 Philadelphia Legal Service Agencies (Call for intake
procedure)
 Philadelphia Legal Assistance: 215-981-3800
 Community Legal Services: 215-981-3700
 SeniorLAW Center: 215-988-1242
 SeniorLAW Hotline – statewide: 1-877-727-7529
 Must be 60 and over, no income limits
 Philadelphia Bar Association’s Lawyer Referral and
Information Service: 215-238-6333
 Connects callers with private attorneys in Philadelphia; not
free legal services
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Resources
Pennsylvania Attorney General’s Office
www.attorneygeneral.gov
 AG’s Elder Abuse Hotline: 1-866-623-2137
 Call to report abuse or consumer fraud
 Determine if a home-repair contractor is registered:
http://hicsearch.attorneygeneral.gov/
City of Philadelphia
 Department of Records, Reference Division: City Hall Room 154
 Research property records, obtain copies of deeds
 Register of Wills: City Hall Room180
 Raise an estate, determine if an estate has been opened
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Questions?
Elizabeth Shay, Esq.
Homeowners Assistance Program
SeniorLAW Center
215-701-3207
Joanna Jarzebowska, Esq.
Conwell Community Corp Fellow
SeniorLAW Center
215-701-3216
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